Question

AutoSave O u Excel Template Assignment cho2 (1) . Protected View Excel Search File Home Insert Page Layout Formulas Data Review View HelpDYMO Label QuickBooks PROTECTED VIEW Be careful--Iles from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View Enable Editing NO .1X J 1 E2-5 Compute the manufacturing overhead rate and under or overapplied overhead 2 Ikerd Company applies overhead to jobs on the basis of machine hours used. Overhead costs are expected to total 3 $300,000 for the year, and machine usage is estimated at 125,000 hours. For the year. $322,000 of overhead costs 4 are incurred and 130,000 hours are used. K L 6 Instructions 7 (a) Compute the manufacturing overhead rate for the year, 8 (6) What is the amount of under-or overapplied overhead at December 31? 9 ) Prepare the adjusting entry to assign the under-or overappled overhead for the year to cost of goods sold. 10 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 11 14 (a) Compute the manufacturing overhead rale for the year. 17 Estimated total overhead cost Estimated machine hours Overhead rate Value Value 21 (b) What is the amount of under or overappled overhead at December 31? Actual machine hours used Manufacturing overhead applied Manufacturing overhead incurred Manufacturing overhead over (under applied) Value 7 Value 29 (0) Prepare the adjusting entry to assign the under-or overapplied overhead for the year to cost of goods sold. Valve 821 12. Account 12.9 P2-3A P2-SA CO2 O Type here to search

Answer 1

Actual manufacturing overhead costs Manufacturing overhead cost applied Under applied or over applied overhead cost $3,22,000.00 $3,12,000.00 $ 10,000.00 Under applied Esimated overhead cost Estimated machine hours usage Manufacturing overhead rate $ 3,00,000.00 $ 1,25,000.00 2.4 $ 1,30,000.00 Total machine hours used Rate per machine hour Manufacturing overhead cost applied $ 3,12,000.00 Particulars DR CR Cost of goods sold $ 10,000.00 Manufacturing overhead $ 10,000.00 To record the adjusting entry for under applied manufacturing overhead cost assigned to cost of goods sold